Shares of Cronos Group (NASDAQ:CRON) dropped 7.7% as of 11:41 a.m. EST on Wednesday after sinking as much as 11.5% earlier in the day. Investors appeared to be digesting the downgrade of Cronos stock by GMP Securities yesterday from “buy” to “hold.” Canadian marijuana stocks, in general, also fell as a group on Wednesday, in part due to Aphria’s (NYSE:APHA) board of directors rejecting a hostile takeover attempt by Green Growth Brands.
What does today’s news really mean for Cronos Group…
Nothing. Absolutely nothing.
GMP Securities analyst Martin Landry admitted in his note to investors that his downgrade of Cronos wasn’t based on any fundamental issues with the company. Actually, Landry continues to think that the company’s prospects are very good. But he thinks that “shares need a breather” after Cronos Group’s big run-up this year.
It’s not surprising that many Canadian marijuana stocks fell after Aphria rejected the buyout bid by Green Growth Brands. You can look at the charts of these stocks and see that they often move as a group. However, Aphria’s decision has…
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